Financial Services Talking Points | 14/09/18

In today’s talking points Senior EU official calls for close EU-China cooperation in financial service, China stands between emerging market turmoil and global pain and Australia dollar bounces on jobs boost, hope for trade talks

 

Interview: Senior EU official calls for close EU-China cooperation in financial service

In an interview with Valdis Dombrovskis, the European Commission Vice President urged for strategical cooperation between the European Union (EU) and China to stabilise the international economy.

“Both China and the EU are global players in the area of financial services and should take responsibility to make the international financial system safe, stable and efficient,” said the EU senior official.

He also raised the role that financial institutions play in decarbonising the European economy, with this said the European Commission is pushing for the EU financial sector to invest in a more sustainable economy.  But as sustainable finance is a cross-border issue Dombrovskis insists on the importance of China-EU cooperation.

Source: Xinhua

 

China Stands Between Emerging Market Turmoil and Global Pain

Developing economies have been under significant strain this past year, including markets across Turkey, South Africa and Argentina.  While developed economies have remained relatively unaffected by market fluctuations, developing markets are more vulnerable. China makes up around 30 percent of global growth and China’s growing economy has protected emerging markets from economic crisis.  A prime example was during the Asian financial crisis, when China chose not to devalue it’s currency.  China is also the largest trade partner of many developing countries, and a blow to its economy could see a severe impact to those emerging economies.

“If the trade war sinks China’s economy, the emerging world and rest of Asia will inevitably feel the full gravity of the downforce,” said Chua Hak Bin, senior economist at Maybank Kim Eng Research Pte in Singapore.

Source:  Bloomberg

 

Australia dollar bounces on jobs boost, hope for trade talks

The Australian dollar extended a rare bounce on Thursday as surprisingly strong jobs data and a hint of possible progress in the Sino-US trade stand-off forced bears to cover some short positions.

Australia dollar bounces on jobs boost, hope for trade talks

The Aussie dollar popped up to US$0.7187, after rallying 0.7 per cent overnight and away from a two-and-a-half year trough of US$0.7085. It now faces layers of resistance around US$0.7200 and US$0.7236.

The latest blip came after data showed Australian employment jumped 44,000 in August, far above forecasts of a 15,000 gain.

Source: Business Times